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Towerstream Corporation Message Board

  • garysevan garysevan Nov 15, 2012 4:44 PM Flag



    The presented valuation comes courtesy of Rodman & Renshaw having initiated coverage of Towerstream as of August of 2011 with a Market Outperform rating and a price target of $6 based on a lengthy analysis of core operations. While later that month in a follow-up report to clients [ a matter of revised estimates ] the company's analysts wrote…

    'Towerstream (TWER, Market Outperform) reported second quarter 2011 revenue of $6.6 million, up 10.5% Q/Q and 35% Y/Y , breezing past our estimates of $6.5 million. Excluding One Velocity acquisition, revenues were up 7% Q/Q. GAAP loss of $1.3 million ($0.03 per share) was lower than our forecasted $1.6 million ($0.04 per share).'

    Additionally, we need factor in continued M&A activity plus capex and opex considerations as relate to the Wi-Fi initiative overall.

    The two business models are not as yet being reported separately.

    And Jeff Thompson on the subject during the latest CC…

    "… we're pretty close to having the company's reporting completely separate. And at that point, you'll get all the granular detail that you need… ."

    Core operations reporting is currently being impacted by expenses associated with the Wi-Fi buildout and thus I took the liberty of reducing Rodman & Renshaw's valuation to the $5.00 area.

    The way it looks at present is that anticipated [ 2013 ] cash flows from both business models will serve to meet all operating and growth/expansion needs from that point onward. No need of equity-based nor debt-based sourcing of capital.

    Time will tell.


    Always a pleasure.

    A well-done synopsis on your part.

    No argument from me.

    Though the one thing we need bear in mind being the fact of the Tier One carriers being massive companies.

    And recalling one example of management's own words on the subject…

    "We're pushing for the integration every day but we can't tell big large ships to move like we move. There are some of the carriers that do want to move really quick."

    Management has been, and still is, impressing upon shareholders the fact of AT&T and the rest moving at their own pace. And let's not forget the fact of these companies being unable, in the beginning, to see the actual business model. How it was that Towerstream's offerings could benefit them. Wi-Fi offload wasn’t something that the carriers were gung-ho about.

    And then they woke up to the reality. The industry galloping to the rescue with Passpoint. That which will serve to alleviate concerns as regards control and security and ease of access and such.

    Much having changed over time. Inclusive, as we know, of current carrier partners being once not in an internal infrastructure position to even rent Towerstream's networks.

    The carriers get the business model now. Having signed long-term pricing agreements. Having implemented the internal changes necessary to accommodate Towerstream's move away from a usage-based pricing model to a leasing-basing model. The integration issues largely dealt with. So on.

    Everything a go but for the flipping of those proverbial switches.

    And management is pushing hard on that front.

    Big, large ships for sure but big, large ships in desperate need.

    No way would all that's transpired have transpired were carriers not serious. Not intent upon flipping those switches. And, doubtless, once the first goes live the second will soon follow. Spurring additional partnerships in order to remain competitive.

    And Jeff Thompson's closing remarks per the latest CC…

    "Well, thanks, folks, again. I'd -- thanks for being on the call. We worked really hard over the last couple of quarters to build this portfolio. And we've built a lot of stuff, and it's great to see that the carriers are finally going to come. So we're excited about this. Our team's done a great job. We're going to continue to build this out, and we look forward to a great 2013. Thank you, folks."

    [ it's great to see that the carriers are finally going to come ]

    The payday that we, all of the longs, have long-awaited.

    But having said that let's also consider the small cell colocation side of things. Plus associated backhaul.

    Far more to consider than just Wi-Fi offload.

    As for a buyout?

    I see a sooner than later buyout.

    Towerstream itself gradually becoming a Tower Company.

    One focused on small cells.

    But for now there are PR's in the offing.

    PR's going to see market level gapping northward massively!

    The short squeeze of the century inclusive.

    Gotta love it!

    Sentiment: Strong Buy

    This topic is deleted.
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